Sawyer Investment Management Company

03/21/2022

10/27/2019

Value investing has been around practically forever and formally studied for at least 30 years, but there is still a lot of confusion surrounding it. Learn the truth here:

"Value investing has been a part of the investment lexicon for the better part of a century, with the diversified systematic value factor (or value effect) studied extensively since at least the 1980s. The authors aim to clarify the many remaining areas of confusion about value investing, focusing o...

10/15/2019

A simple sector rotation strategy using the Cyclically Adjusted Price Earnings ratio (CAPE) has produced significant hypothetical excess returns over a period of 110 years:

"We construct a price, dividend, and earnings series for the Industrials sector, the Utilities sector, and the Railroads sector from the beginning of the 1870s until the beginning of the year 2013 from primary sources. To infer about mispricings in the sector markets over more than a century, we inv...

10/01/2019

Value companies outperformed growth companies in most developed countries during the 1975-1995 period.

"Value stocks have higher returns than growth stocks in markets around the world. For 1975-95, the difference between the average returns on global portfolios of high and low book-to-market stocks is 7.60% per year, and value stocks outperform growth stocks in 12 of 13 major markets. An internationa...

08/31/2019

Quality companies tend to outperform junk companies, even after controlling for commonly used risk models.

Quality companies tend to outperform junk companies, even after controlling for commonly used risk models. 0:00 - Introduction This...

08/23/2019

Higher dividend payout ratios tend to predict higher subsequent earnings growth:

Higher dividend payout ratios tend to predict higher earnings growth going forward. 0:00 - Introduction This is a paper called "Does...

08/20/2019

Using the Fed Model to determine appropriate stock market P/E levels is flawed, primarily due to stocks being "real" assets and bonds being "nominal" assets.

Using the Fed Model to determine appropriate stock market P/E levels is flawed, primarily due to stocks being "real" assets and bonds being...

08/15/2019

"Deep Value" episodes create great opportunities for investors to earn excess returns:

In this paper, the authors explore the drivers and results of deep value events across several markets and asset classes. 0:00 - Intro...

07/07/2019

Ryan Sawyer reviews this month's model portfolio:

Our current portfolio is composed of 20 stocks, the top 5 of which are Total SA ADR (TOT), Sanofi SA ADR (SFY), GlaxoSmithKline PLC (GSK),...

06/28/2019

The combined value/momentum strategy outperforms across several markets and asset classes:

This is a summary of a paper written by Cliff Asness, Tobias Moskowitz, and Lasse Pedersen called "Value and Momentum Everywhere", published...

06/16/2019

The Jegadeesh/Titman "past 6-month return" momentum strategy performs well within one year time frames; but ranking by momentum factor-loading performs consistently over longer time periods:

This is a summary of a paper written by Travis R.A. Sapp called "The 52-week high, momentum, and predicting mutual fund returns", published ...